QUESTION 4 (20 MARKS) a. Risk is a term often used in an auditing environment and there are numerous types of risk. Define each of the following: i. audit risk ii. significant risk iii. control risk iv. sampling risk v. inherent risk vi. non-sampling risk vii. detection risk (7) b. Stricter planning and performance materiality limits set for the audit will usually result in an increase in the extent of audit procedures to be carried out. True or false? Justify. (2) c. What should the auditor consider when determining whether a risk is a significant risk? (2) d. What does the phrase "non-controllable risk" mean? (1) e. Does risk relate to an account heading as a whole or to the assertions relating to that account heading? (2) f. Increased audit risk results in increased audit work. True or false? Justify. (2) g. Does the business risk faced by a client have any relationship to audit risk? Discuss. (2) h. What is the link between audit risk and audit evidence?